Presidential Decree No. 9284, published in the Official Gazette dated 22 December 2024, has determined a 1% withholding tax rate for payments that intermediary service providers and electronic commerce intermediary service providers make to service providers and electronic commerce service providers for their activities under the Law No. 6563 on the Regulation of Electronic Commerce. These payments were included in the scope of payments subject to withholding tax through the Law No. 7524, dated 28 July 2024. (For background, see EY Global Tax Alert, Turkiye proposes draft bill amending tax laws for corporations and individuals, dated 17 July 2024.)

Law No. 7524, published in the Official Gazette dated 2 August 2024, included certain payments in the scope of payments subject to withholding tax with the changes made in the Article 94 of Income Tax Law and Articles 15 and 30 of the Corporation Tax Law. These include payments that intermediary service providers and electronic commerce intermediary service providers make to:

• Service providers within the scope of Law No. 6563 on the Regulation of Electronic Commerce (Article 94 of the Income Tax Code)
• Service providers and electronic commerce service providers within the scope of Law No. 6563 on the Regulation of Electronic Commerce (Article 15 of the Corporation Tax Law)
• Service providers and electronic commerce service providers with a workplace or permanent representative in Turkiye within the scope of Law No. 6563 on the Regulation of Electronic Commerce (Article 30 of the Corporation Tax Law)

Presidential Decree No. 9284 has now determined the withholding tax rate for abovementioned payments as 1%.

The Decree entered into force on 1 January 2025.